Google Has No Duty To Refund Gift Card Scam Victims, Judge Finds

A federal judge in California has dismissed most claims in a class-action lawsuit against Google over its handling of gift card scams, ruling the tech giant is not liable for millions in consumer losses. U.S. District Judge Beth Freeman found Google bears no responsibility for scam victims' losses since third-party fraudsters, not Google, induced the purchases.

The ruling came in a suit filed by Judy May, who lost $1,000 to scammers demanding Google Play gift cards for a fake government grant. The lawsuit cited Federal Trade Commission data showing Google Play gift card scams comprised 20% of reported gift card fraud between 2018-2021, totaling over $17 million in losses. Google earns 15-30% commission on gift card purchases but denies refunds, citing industry-standard policies. Freeman ruled Google had no duty to investigate reported scams or refund victims.